The Philippines joined 33 other economies in calling for the much-needed revival of the trade dispute settlement system within the World Trade Organization (WTO), in a bid to uphold rules-based stability amid deep uncertainty for global trade.

In a joint statement over the weekend, member economies of the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) emphasized the need for a “fully and well-functioning dispute settlement system” accessible to all WTO members.

“A reformed WTO dispute settlement system remains our priority objective,” said the MPIA members, which include the Philippines.

The dispute settlement system for global trade was established to enable countries to challenge trade measures that violate agreed-upon global trade rules.

It was crafted to help developing economies defend their trade rights on equal footing with larger and more developed trading partners, ensuring that all members can uphold their rights under WTO rules.

However, the system has essentially become inoperative since 2019 due to the lack of quorum in the WTO’s Appellate Body, which serves as the final stage in the dispute process. As a result, appeals have been left in limbo, eroding the enforceability of WTO rulings.

The Geneva-based United Nations Conference on Trade and Development (UNCTAD) said earlier this month that reviving this system would benefit developing economies the most.

Countries like the Philippines have been facing the brunt of discriminatory trade measures, especially last year with the United States’ (US) imposition of reciprocal tariffs.

Speaking before the 14th WTO Ministerial Conference, Trade Undersecretary Allan Gepty said this makes it clear that the dispute system needs to be modernized to address new economic realities once it becomes functional again.

Despite this, he said that “it is imperative that we remain faithful to WTO’s core principles of an open, fair, transparent and non-discriminatory rules-based multilateral trading system.”

As the push to restore this system is underway, the Philippines expressed its support for expanding the membership of the MPIA, which was established as an alternative settlement system in the absence of a functioning Appellate Body.

“Pending the establishment of a fully and well-functioning WTO dispute settlement system, we encourage other WTO members to join the MPIA, which provides rules-based stability, security and predictability,” the statement read.

Since its establishment in 2020, the MPIA now covers 61 WTO members and has so far successfully resolved two appeals.

“Through the MPIA, any disputes among us continue to benefit from a binding dispute settlement system at the WTO, including the availability of an independent and impartial appeal stage,” the MPIA members said.

Through this interim system, member economies said it helps provide “security and predictability to the multilateral trading system during these challenging times.”

Apart from the fresh imposition of tariff policies by the US earlier this year, the global trade system is entering a new age of uncertainty stemming from disruptions caused by the war in the Middle East, which has been raising fuel prices to new levels.

Other parties to the joint statement include China, the European Union (EU), Hong Kong, Japan, Malaysia, Singapore, Vietnam, Canada, and the United Kingdom (UK), among others.